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One of the Issa brothers is reportedly planning to offload his stake in Asda and instead focus on EG Group’s petrol station business, The Telegraph has reported.
Reports said that Zuber Issa has approached buyout specialists and retailers to explore a sale of his 22.5% stake in Asda, only three years after acquiring the group in a £6.8bn deal alongside his brother Mohsin and TDR Capital.
Sources told the Telegraph that Zuber had “indicated a desire to focus on EG Group” in recent discussions, and would prefer another investor to join TDR and Mohsin for Asda’s next phase, which could include the purchasing of Boots.
A sale of his stake, which is said to be valued at more than £500m, would need to be approved by both Moshin and TDR Capital due to lock-in agreements, however.
Sources told The Telegraph that Zuber could also seek to sell his stake to the private equity firm, though TDR would be expected to offer a lower price than an outside investor.
Other sources suggested he could use the proceeds to buy Mohsin out of EG Group and “disentangle their fortunes”.
In addition, there was speculation that TDR, which holds a controlling stake in Asda, is looking to bring in a CEO with more grocery experience to replace Mohsin, who has been at the helm of Asda since 2021.
Asda has been contacted for comment. TDR Capital declined to comment.
